Day Trading

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Description:
Day Trading and Day Trading Strategies from the TradingLounge Education.
This Technical Analysis video is the basis for setting up our Mechanical Day Trading Methods called Robo, the Robo trades are for the AU, UK and USA , if you require Day Trades for these markets or further Trading Education in Technical Analysis such as Elliott Wave or TradingLevels then visit the TradingLounge for a Free Trial http://tradinglounge.com.au

Day Trading
Dow Jones 12,359 -0.45%
Base Metals Positive
US Gold CFD: 1634
Oil WTI: 102
Copper CFD: 350
US Dollar: 81.45
EURUSD 1.27480
AUDUSD 1.03
Dow Jones CFD 12,450
S&P500 CFD: 1290
FTSE 100 CFD: 5690
SPI CFD 4165

Trading Education
NEW YORK -(Dow Jones)- U.S. stocks were ahead but off session highs Tuesday afternoon after strong gains overseas and an upbeat start to the U.S. earnings reporting season pushed blue-chip stocks to levels not seen since late July.


CFD Commodities

US Gold CFD: 1634
Technical Analysis
Day Trading : The support is through upper levels of Subgroup1 1620 | 1630 and the MediumLevel 1650 is the resistance. The general pattern of gold is similar to many other markets, a simple breakout of a sideways pattern, these surges at the end of trends are normally on lower volume, we should be seeing tops this week. Trading Education
Elliott wave: Gold moved nice higher, in impulsive manner as expected after the prices broke through 1624 resistance of a wave (d). We know that triangles occur prior to the final leg of the larger pattern, which means that current bullish waves may find a top in the near future. The advance that we are monitoring still could be wave C of larger corrective pull-back. Now we need to be patient and let’s see if we will get signs of a top or not.
Sliver at resistance 30.00 MajorLevel, give it some time to develop support or resistance.
Oil WTI: 102
Technical Analysis:
Day Trading Oil has much the same pattern as other commodities and stocks and the move up is in line with other markets which we expect to find a top this week in Elliott terms, the tradinglevels are the trading insurance for supporting Elliott or not, in that, the price simply being above 100 MajorLevel TL1 is a positive and only long trades would be placed, now breaking that down in to Group1 {101|102|103} we can start to work out the trade, firstly if support is found on top of Group1 103, then we trade to 105. The other aspect in Group1 is trading from the main level in this case 100 to the top of group1 103 and exit and then wait for support, if found trade to 105. And another aspect if waiting for the pivot 102 to find support and move in long from there.
Elliott wave: Oil is trading nicely higher since we called end of a corrective double Zigzag pattern around $100 per barrel. Notice that move is quite sharp and has an impulsive personality through the falling corrective channel line. As such, we believe that prices will revisit 103.60 levels and even higher in this week.
Base Metals

US Spot Prices (in l/b)
US Copper: Last: 3.50+
US Nickel: Last: 8.79+
US Zinc: Last: 0.86+
US Aluminium Last: 0.95+
Copper CFD: 350
Technical Analysis:
TradingLevels: The retest to 350 has taken place and this move is the same as most other markets and we are expect the other markets, more so the US Indices to top this week, if this is the case then Oil Gold Copper etc should do the same. However from a trading point of view we need to trade what we see rather than attach ourselves to an opinion, so if the 350 Midpoint develops support then it’s a positive market, but it need to be a good support, there is plenty of supply (sellers) from 350 to 365, the likely resistance numbers are 356, 357 and 358 then a more serious retest of the Midpoint, it would be this retest that will be the focus. Remember this market is a catalyst of base metals and therefor of the AUDUSD and the Materials sector on the ASX UK USA etc and is now also driven by the Shanghai Copper futures i.e China, and the sharp rise today is from comments made by China regarding spurring growth.
Forex

Forex US Dollar: 81.45
Technical Analysis:
Day Trading TradingLevels: Minor Group1 (MG1 {81|82|83}) it is important to understand while the price is in MG1 it is still part of the next degree higher that is the MajorLevel TL8 | 80.00 only when the top of Group1 83.00 is the support that the price is free of TL8.
Being inside Minor Group1 offers a variety of trading opportunities, however you need to be clear on what you’re doing, there are some basic strategies that can be applied, not some much as to different time frames but to different degrees of structures and in this case there the basic structure apart from the MajorLevel TL8 and the Microlevels, the MinorLevels and Sublevels (SubMinor) are the degree of structure you would start planning your trades out and there are rules how to use the levels, they are the same throughout all the degrees of structures.
In the Minor Levels (MG1 {81|82|83}) the 1 is the strongest number and the 2 is the pivot for Group1 and Group1 has its rules and characteristics depending if you’re going long or short through the Group or if your scalping the sublevels then the normal tradinglevels rules apply
Elliott Wave: The move down to 81 (mTL1) is wave a or I any bounce off 81 is wave b or ii. Because the price is still trapped in MG1 we have to be open to a larger corrective pattern across 80. That said the Pound and Euro have long term trends down so any larger corrective pattern at 80 would be sharp and short.

Forex EURUSD 1.27480
Technical Analysis: The 1.28 is the main play here, the 8 is a profit taking number, so a correctional pattern is assured, the supports under this the nest degree down is the Group2 1.2765|1.2772|1.2780 and then the group1 above 1.28 the 1.2810|1.2820|1.2830.
Elliott wave Euro made a new high in recent hour, which made the wave counts and outlook at little more complicated, simply because now a recovery can be counted in different way. It could be a corrective w)-x)-y) which is our primary count, but in such case we need immediately impulsive fall back below 1.2742, If we don't get that, and if price will trade slowly lower, then recovery from the lows could also be a leading diagonal in wave (a), of a larger and incomplete recovery.
Trading Strategies: The price is working with 1.28, the normal thing to do is to trade to 1.28 and exit. Then wait for the correction, look for the basic three swings, Elliott Zigzag then if the price climbs on 1.28 as support then work the long side using group1, there are a handful of strategies you can use in and through Group1 you just need to be clear on what you are doing. On the flip side if the 1.28 becomes the resistance then use Group2 1.2765|1.2772|1.2780 and in this case the 1.2772 is highly important as support or resistance, you would short a failed retest of 72.
The current move up is part of a Elliott wave four and wave fours can get complicated, as mentioned before we don’t normally trade wave four. The move up is likely one leg of three
Forex AUDUSD 1.03
Day Trading : I have talked about Group1 in the EarlyBird toady in different markets and it’s the same here in the AUDUSD Subgroup1 (SG1 101|102|103) however in this case the price is at the top of Group1 at 103 and if the price develops support on top of Group1 it will move higher to 105 the Midpoint, this is Subgroup1 |103 as MinorGroup1 MG1 would be at 1.30.
Elliott wave: The current move up from around the 1.0150 to 1.0350 is in three waves ABC, the corrective pullback pattern about to unfold at 103 can be wave four.
Trading Strategies : Allow the corrective pattern at 103 to unfold, at minimum look for three swings. The support apart from 103 is the next degree down and under 103, Group2 1.0265|1.0272|1.0280 which falls into the 382 – 50% retracement level for a wave four and also the wave four of one lesser degree. Wave fours can get messy.
On the upside you want 10330 as support.

Day Trading Gold, Oil and S&P Futures moved nicely higher during Asian session and supported some FX pairs, while the US dollar moved slightly lower. However at the start of the European session we can see some pressure against the Euro and Pound, which in fact could be start of some larger declines on those pairs based on the EW pattern. We believe that weakness on both will be significant if S&P Futures reaches just a temporary resistance. In fact, S&P moved out of a corrective price action that we highlighted few times in the past updates, and if we take a look on the structure of the pattern, then we can clearly see that it was a triangle. And here comes the interesting part, "Triangles unfold just prior to the final move in the larger pattern", which means that bearish reversal should follow. As such, we are observing levels from 1283-1290 for a potential top.

Dow Jones CFD 12,450
Technical Analysis
TradingLevels: The 12500 was a target for the top of this trend, however, what is happening in price action at a level is normal for a bullish market there is no evidence yet of a top, when a price arrives at a number like this, 5 (500) is the second strongest number, this is called the arrival, then the reaction, the finding support, then the retest or the first high above the level, this would be part of the basic Classic pattern unfolding. It is the retest of supply that is the real important aspect to observe, once we can see if we are going to get a failed retest or the first high above the levels 12500 then we know what will happen next
Elliott wave: I think the correction at 12,500 is a wave four, with a wave five to 12550 the wave five being the same length roughly as wave one…
Day Trading If support can be found on 12,472 then trade up, if you have been trading up then you would have exited at 12500. You know the Dow likes to work each 100 points, this is where the corrections are. Use the sublevels to plan entries, stops and exits. Or if your scalping then the 2 minute Robo and the tradinglevels, the market runs the fasted between number 3 -5 -8 up or down
S&P500 CFD: 1290
TradingLevels: The 1,300 is the MinorLevel (mTL3) and is the top of MinorGroup1 (1100|1200|1300) so this is a very important price point, we should expect the price to have a correction above below across this level.
Elliott wave: The structure up is still going so expect he price to find a top this week at or above 1300. Count the impulse wave (5 waves) from the 1265 (SG2) up, you can see it still had further to go
Trading Strategies : If your long you should think of scaling into 1300
FTSE 100 CFD: 5690
Technical Analysis
TradingLevels: You can see the impulse wave up and the 5700 is where the corrective pattern is unfolding, so allow it to unfold in three swings, if support is found on 5700 after the correction pattern then edge in long, the 5720 will also be resistance, it is part of Subgroup1 but its also a 72
Elliott wave: Same - Targets 5772 - 5800
Trading Strategies: Wait for the correction at 5700 to become fully developed then look for support (Gann liked to use 57 a lot)

SPI CFD 4165
Technical Analysis
TradingLevels: The target is 4200 with the SG2 in the way (6165|4172|4180) any longs would require 4172 as support
Elliott wave: Count the Impulse wave up (5 waves) up from the 4100 to 4200
Day Trading: China mentioned about spurring the economy, the trend up is the result. Expect a correction pattern at SG2 after the smallish corrective pattern look for support on 4172 add on 4180 support exit at 4198

Summary

We got our move up in most markets, now we are looking for the top which should occur this week. In the move up we are looking for an impulse wave (5 waves) I think we have the top of wave three and four is developing with the fifth wave up to go, at a very rough guess just to give shape to the pattern the Dow at 12550

Weekly Cycle; Wed higher close, Thursday open higher close lower.

Trading Quote

Nothing New In Day Trading

That enormous profits should have turned into still more colossal losses, that new theories should have been developed and later discredited, that unlimited optimism should have been succeeded by the deepest despair, are all in strict accord with age-old tradition.


Today's Financial Events
Time Currency Detail Forecast Previous

11:01am GBP BRC Shop Price Index y/y 2.0%
4:00pm JPY Leading Indicators 92.9% 92.0%
8:00pm EUR Final GDP q/q 0.2% 0.2%
8:30pm GBP Trade Balance -8.2B -7.6B
1:00am USD FOMC Member Lockhart Speaks
2:30am USD Crude Oil Inventories 2.2M
6:00am USD Beige Book

NOTES:
1. Check the Dividend & Reporting section for your stock on this site before trading
2. Prices may change as this Technical Analysis report is written from 3.30 – 6.30AM
3. Always think things out for yourself, we are only here to bounce ideas around.